Customs and excise duties

What is excise duty?

Excise duty is an indirect tax (i.e. one that is not levied directly on citizens but indirectly when goods are purchased) on certain consumer goods. This is a special kind of tax as it is governed by both Polish and EU laws (as part of so-called harmonised goods). Regulations on harmonised goods mean that a less complicated system of trading in excise goods may operate safely across the European Union.

Excise duty in Poland and abroad

Not all EU member states have the same products liable to the same excise duty and not all countries have the same regulations in this respect. Poland, for example, imposes excise duty on, among other things, passenger cars and lubricating oils, which is problematic when these goods are purchased from other EU countries. Regulations designed to prevent abuse among payers of this duty are complicated, which creates additional difficulties. Both Polish and foreign entities which operate in Poland are often unaware of their obligations related to trading in excise goods.
 

What is customs duty?

Customs duty is nothing more than a charge for moving goods across customs borders.

Customs duty may be collected in order to:

• increase state budget revenue
• protect internal market and domestic manufacturers against goods manufactured abroad,
• exert pressure on a trading partner to change (or not to change) the terms of trade (retaliatory duties).

In the context of protecting domestic industry, customs duty is the basic tool of economic protectionism. However, in the era of globalisation and free international trade  the tools for protecting internal market lose importance. Countries form customs unions, thus abolishing customs duties in trade between them and at the same time harmonising their customs policy towards third countries.

Unlike excise duty, customs duties are the same throughout the European Union and goods can be cleared in any EU country. Customs duties on individual goods are listed in the EU customs tariff, however, they are sometimes agreed in international agreements concluded between the EU and third countries, in which the EU lowers customs duties on goods coming from countries with which it has concluded an agreement. In order to benefit from preferential duty rates, the origin of goods must be properly documented (certificates and authorisations for both the products themselves and the transporting entities).

We would be glad to support you in solving your specific case and to offer you comprehensive tax and customs advice. 

Our services also include employee training on customs and excise duties both at your premises and at our offices.